Suppose in the country of Jumanji that the price of coffee with no trade allowed is below the world price of coffee. If Jumanji allows free trade, will Jumanji be an importer or an exporter of coffee?
Jumanji will be an exporter of coffee.
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The unattainable points in a production possibilities diagram are
A) the points outside the production possibilities frontier. B) the points of the horizontal and vertical intercepts. C) the points within the production possibilities frontier. D) the points along the production possibilities frontier.
Refer to the table below. If these are the only three price options for a bushel of corn, what is the expected value of the price of a bushel of corn?
The above table provides the possible prices for a bushel of corn next year along with the associated probabilities (in percent).
A) $2.50
B) $2.78
C) $2.25
D) $3.00
If the quantity of bananas sold increases by 5 percent when the price decreases by 10 percent, the price change occurs in the
A. bottom half of the downward-sloping straight-line demand curve and total revenue decreases from this price change. B. bottom half of the downward-sloping straight-line demand curve and total revenue increases from this price change. C. top half of the downward-sloping straight-line demand curve and total revenue decreases from this price change. D. top half of the downward-sloping straight-line demand curve and total revenue increases from this price change.
Exhibit 7-10 Short-run cost schedule for book publisher's hourly production TotalOutput TotalVariable Cost TotalCost 0 cases of books $ 0 $200 1 100 300 2 150 350 3 250 450 4 450 650 In Exhibit 7-10, the average variable cost of producing 2 cases of books is:
A. $50 per case. B. $75 per case. C. $100 per case. D. $150 per case.